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BMI View: The tourism industry in Saudi Arabia does present some highly positive growth trends. Based on a solid foundation of religious pilgrimage, the number of international visitors to the country is rising steadily and the government is investing heavily in transport and accommodation infrastructure expansion and improvement.However, growing security concerns stemming from Saudi intervention in the conflict in Yemen could deter visitors, as could the rising cost of travel and ongoing restrictions on visas for non-religious visitors.

Key Forecasts (Saudi Arabia 2013-2020)

2013

2014e

2015e

2016f

2017f

2018f

2019f

2020f

e/f = BMI estimate/forecast. Source: National sources, BMI

Total arrivals, '000

13,400.00

14,024.78

14,532.35

14,807.42

14,813.96

14,829.55

14,832.92

14,806.88

Total arrivals, '000, % y-o-y

-6.1

4.7

3.6

1.9

0.0

0.1

0.0

-0.2

International tourism receipts, SARbn

32.59

38.31

49.12

55.75

57.66

60.78

64.41

67.67

International tourism receipts, SARbn, % y-o-y

3.5

17.6

28.2

13.5

3.4

5.4

6.0

5.1

International tourism receipts, USDbn

8.69

10.21

13.09

14.86

15.38

16.21

17.18

18.04

International tourism receipts, USDbn, % y-o-y

3.5

17.5

28.2

13.5

3.5

5.4

6.0

5.1

Key Updates And Forecasts

Saudi Arabia has reportedly increased the cost of visas for religious pilgrimage visitors effective October 2016. The cost of a single entry visa (for all visitors, including tourist, business travellers and religious pilgrims) is now USD533 - a sharp increase from USD93. Multiple-entry visa fees have also been increased. While there are exemptions (for example, for first-time visitors on the Hajj pilgrimage), the move has come under criticism for making travel prohibitively expensive.

The country continues to improve domestic transport connections. Passenger services on the southern section of the under-construction North-South Railway Line in Saudi Arabia are expected to begin at start 2017, according to Riyadh's Governor Faisal bin Bandar Al Saud. The 1,250km North-South line is eventually planned to link Riyadh with Al Qurayyat through Al Majma'ah, Qasim, Hail and Jouf.

Overall we are forecasting growth in tourism arrivals of 1.9% in 2016 to reach a total of 14.8mn. Almost half of total arrivals will originate from regional neighbours in the Middle East, though major markets in the Asia Pacific region (such as India and Indonesia) are also key sources of growth.

The Saudi Arabia Tourism Report has been researched at source and features BMI Research's independent assessment and forecasts for tourist expenditure; government expenditure on tourism; passenger arrivals and departures by mode of transport, reason for travel, origin and destination; and the accommodation market.

Key Benefits

Target business opportunities and risks in the Saudi tourism sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Saudi Arabia.

Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).

Coverage

BMI Industry View

This contains a synopsis of our forecasts, and any changes, together with an overview of key trends and developments in the tourism industry, and an assessment of the impact of various economic and national factors which might affect the sector. It also covers new transport projects, new hotel developments, and acquisitions.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the tourism sector and within the broader political, economic and business environment.

BMI Industry Forecast Scenario

Forecasts to end-2019 for all key indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecasts:

Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.

Market Overview

This contains a comprehensive overview of the tourism industry in the country, its overall value, the value of its hotels industry, trends in the hotels industry and any new developments. It also contains an evaluation of the top 10 global hotel groups’ presence in the country, which brands are present in which cities, the number of hotels and any planned developments and strategies. The Market Overview also considers the tourism infrastructure developments in the country, in particular transport infrastructure projects such as ports and airports. Tables are also included from our regularly updated Key Projects Database, which contain details of projects, their value, the time frame, their current status, the companies involved and their estimated completion dates.

Competitive Landscape

This section provides insight into key domestic players in the hotel industry, discussing, for example, the number of hotels, brands, financial data, geographical spread, recent developments and strategies of individual companies.

SourcesThe Tourism Reports draw on an extensive network of primary sources, such as multilateral organisations,government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reprts instead contain information on the current activities of prominent companies operating in the market.